FAQ's

Express Service

Coida Frequently Asked Questions

The Compensation Fund also known as WCA or COIDA (Compensation for Occupational Injuries and Diseases Act) is a government institution put in place to protect employees and employers should an injury/disease/death occur to any employee “in the line of duty”. As soon as a business employs a worker (can only be one), the business must register with the Compensation Fund.

On the form you are asked for a description of the nature of your business or what your business does. Your business is then classified into a category based on your description.

Each sub-class, (category) has its own risk tariff which is the percentage of the risk of injury to the employees in your particular business, (for example a construction company will have a higher risk tariff than a bank because you are more likely to get injured on a mine than in an office).

Employers are obligated to declare the salaries and total wages to the Compensation Fund yearly. These amounts and the risk tariff of the sub-class are used to calculate an assessment, which the employer must pay to the Compensation Fund. This is an annual process.

This constitutes your contribution towards cover for injuries while on duty. Once this is paid you will receive a Letter of Good Standing. This will be valid until the end of the financial year when the next assessment is due.

Yes it is.
The business is registered with the Compensation Fund. The Compensation Fund registration number is registered in the business name and will stand until de-registered.
Apart from breaking the law, the business can face huge fines or even prosecution for not complying with the Act . The business can be held responsible for huge amounts of money due to claims relating to injury on duty, diseases or death from an employee.
Yes, as soon as you employ one worker you must register with the Compensation Fund.
A Return of Earnings (W.as.8) form must be submitted to the Fund before 31 March annually. Based on the amount of earnings (salaries) paid to employees and members and the category the business falls under, an assessment will be raised and become payable. We can facilitate this for you.
A claim then needs to be raised with the Compensation Fund who will investigate the circumstances. Subject to certain circumstances the Compensation Fund will then be responsible for any costs.
Once the provisional assessment has been paid a Letter of Good Standing can be obtained through us at a fee of R 850.

ALL Companies who have a Letter of Good Standing at the Compensation Fund, need to renew it before 30 April annually – this date is unrelated to the date on which you applied for your first Letter. You may have requested a letter in March and by the end of April you’ll have to renew it again.

This constitutes your contribution towards cover for injuries while on duty. Once this is paid you will receive a Letter of Good Standing. This will be valid until the end of the financial year when the next assessment is due.

A business must be registered with the Compensation Fund, before a Letter of Good Standing can be obtained.

IMPORTANT

​The Compensation for Occupational Injuries and Diseases Act, COIDA, of 1993 requires that all employers, other than those specifically excluded by the Act, be registered with the Commissioner and submit their annual return of earnings. In order to do so, all companies need to be registered as employers with the Compensation Fund of South Africa.

WHAT DOES THE FUND DO FOR ME?

Many employer's see compliance with the Fund merely as a means to getting Letter of Good Standing for tenders and contracts. The Fund is however one of the important building blocks to a successful business, ensuring peace of mind and assurance to both employers and employee's subjected to the possibility of injury & diseases through the work environment. Employers are protected from being sued by employee's injured on duty, while employee's can claim for financial loss caused by injury or diseases.

OUTSTANDING FEES

If there are outstanding monies owed to the fund when we apply for the letter, we will notify the client of the outstanding amount. The client can then make payment to the Compensation Fund directly and submit proof of payment to us. We will hand in the proof of payment to the Compensation Fund. The Letter of Good Standing will then be issued within +- 5 working days after the proof of payment has been submitted and Compensation Fund has no further queries.

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